ALL ABOUT
VA INSURED LOANS
As a proud supporter of the US Military and our Veterans, Coastal Funding specializes in VA Loans.
If you served your country in the US Armed Forces, you may qualify for a VA Home Loan. A Veterans Administration home loan offers a low cost, No Money Down option to Purchase a new home or Refinance your existing home.
ABOUT THE VA AND VA INSURED LOANS
What is the VA?
Led by the Secretary of Veterans Affairs, the United States Department of Veterans Affairs, also known as the VA as a shorthand, is a federal Cabinet-level agency providing integrated life-long healthcare and other services to eligible military veterans. Besides the healthcare and mortgage assistance, the VA also offers job training/placement, educational services, disability compensation, life insurance as well as burial assistance programs. In June 2020, the VA employed 412,892 people at the hundreds of VA run clinics, facilities, benefits offices and cemeteries. The head of the Veterans Affairs Department is appointed by the President with the consent of the Senate.
What Does an "Insured" Loan Mean, Exactly?
Unless if applying for a direct loan from the USDA, it is important to understand that the Agriculture Department, or the government in any capacity, is not loaning you the money to buy or refinance your house with a USDA insured loan. With a USDA Insured Loan, the U.S. Department of Agriculture is putting a guarantee behind you, telling the lender that if you happen to default on your mortgage, they will receive a portion of their loan back from them. This government backing is why the requirements for a USDA loan are often less than other loan types, although individual requirements do vary by lender and on a case by case basis. You could almost think of it as the government co-signing for your home; wouldn't you be a lot more likely to lend someone 20 bucks if Uncle Sam guaranteed you'd get your money back either way?
VA LOAN PROGRAMS & GUIDELINES
The Four VA Loan Programs
VA Purchase loans offer borrowers:
A VA-backed purchase loan often offers borrowers:
- Zero down payment if sales price isn’t higher than the appraised value of the home. This is the value set for the home after an appraiser reviews the property, and is not determined by the VA or lender themselves.
- Generally more favorable terms and interest rates than other loan programs.
- In most cases, an adherence to the Fannie Mae/Freddie Mac conforming loan limit on no down payment loans, and possibly more in some higher cost counties. A borrower can borrow more than this amount if they make a down payment.
- Private mortgage insurance (PMI) or mortgage insurance premiums (MIP) are not required.
- With a VA loan, there are fewer closing costs, and the ones there are may be paid by the seller.
If you qualify for a VA-backed purchase loan, the money you borrow can be used for:
- A single-family home, up to 4 units.
- A condo in a VA-approved project.
- Home purchases and improvements.
- The purchase of a manufactured home or lot.
- The construction of a new house.
- Adding new features, such as solar panels
A borrower can also:
- Use a VA-backed home loan to buy a home for the first time.
- Use their VA loan benefit multiple times if they sell or refinance a home they bought with a VA-backed home loan.
- Take over a seller's previous loan.
An IRRRL Streamline refinance offers borrowers:
- The ability to receive a lower monthly mortgage payment through a lower interest rate, or the ability to make the monthly payments more favorable by switching from a loan with an adjustable or variable interest rate to a fixed interest rate.
- In most cases, an adherence to the Fannie Mae/Freddie Mac conforming loan limit on no down payment loans, and possibly more in some higher cost counties. A borrower can borrow more than this amount if they make a down payment.
A VA-backed cash-out refinance offers borrowers:
- A VA-backed cash-out refinance loan may help you to:
- Take cash out of your home equity to pay off debt, pay for school, make home improvements, or take care of other needs, or Refinance a non-VA loan into a VA-backed loan.
- In most cases, an adherence to the Fannie Mae/Freddie Mac conforming loan limit on no down payment loans, and possibly more in some higher cost counties. A borrower can borrow more than this amount if they make a down payment.
A Native American Direct Loan is for Veterans who are Native American or married to someone of Native American descent and offers borrowers:
- In most cases, zero down payment.
- Private mortgage insurance (PMI) or mortgage insurance premiums (MIP) are not required.
- Generally low closing costs.
- Low-interest, 30-year fixed mortgages.
- A reusable benefit, meaning one can receive a NADL more than once to buy, build, or improve another residence.
- The ability to receive a lower monthly mortgage payment through a lower interest rate, or the ability to make the monthly payments more favorable by switching from a loan with an adjustable or variable interest rate to a fixed interest rate.
About Coastal Funding
In business for over 20 years, Coastal Funding Corporation is known for our determination to acquire as many lending partners as possible. We understand not every loan program fits every person, and on top of that, every lender has their own specific requirements, meaning the more options we have at our disposal to match you up with, the more likely you are to find not just a loan, but the right loan.